Innovation does not come from the free market from "summary" of 23 Things They Don't Tell You About Capitalism by Ha-Joon Chang
The idea that innovation does not come from the free market may sound counterintuitive at first. After all, the prevailing belief is that competition in the market drives companies to innovate in order to outdo their rivals and capture market share. However, this is not always the case. In reality, the free market does not always encourage innovation, especially when it comes to long-term, high-risk research and development projects. This is because companies operating in a free market are often focused on short-term profits and shareholder returns. As a result, they may be reluctant to invest in projects that may take years to yield results or that carry a high risk of failure. Moreover, the free market is not always conducive to collaboration and knowledge-sharing, which are essential for innovation. Companies are often more c...Similar Posts
The role of agriculture in economic development is significant
The importance of agriculture in the process of economic development cannot be overstated. Agriculture not only provides food f...
Encouraging responsible consumption and production
The idea of responsible consumption and production is crucial for the sustainable development of our world. It involves making ...
Asset prices can be influenced by market speculation
Market speculation can have a significant impact on asset prices. Speculation refers to the act of trading assets based not on ...
Technology shaped the future
The transformative power of technology cannot be overstated. Throughout history, technological advancements have played a pivot...
Policies promoting competition can enhance productivity and growth
Policies that encourage competition among firms can play a vital role in boosting productivity and fostering economic growth. W...
Cultural diversity enriches societies
Throughout history, societies have thrived on the exchange of ideas, knowledge, and beliefs brought about by cultural diversity...
Corporate performance indicators shape public perception
Corporate performance indicators play a crucial role in shaping the public perception of a company. These indicators provide a ...
Trade can promote economic development
Trade plays a crucial role in promoting economic development by allowing countries to specialize in the production of goods and...
Unintended consequences are inevitable
Unintended consequences are, by definition, unforeseen. They are the unexpected outcomes of our actions, often resulting from t...